ICFG Germany / Quantum Partners advises Voltstorage GmbH on $24m financing round by Cummins Inc.

Making renewables available 24/7 – is the mission of VoltStorage GmbH and at the same time probably the greatest challenge in the energy sector on the way to CO2 neutrality. Fossil power plants still must compensate for the volatility of renewable energy sources. However, to create a real alternative to conventional power generation, electricity storage solutions are needed that make renewable energy reliably available when it is needed. In the course of global decarbonization, the demand for corresponding large-scale long-duration energy storage has increased enormously in recent years. By 2030, the market size is forecast to exceed EUR 100 billion.

While lithium-ion batteries currently still dominate the offering, the Munich-based start-up VoltStorage has developed an iron-based battery system with redox flow technology that is superior to previous solutions in terms of cost – and at the same time relies on safe, environmentally friendly and sustainable raw materials.

Founded in 2016, the company has already been able to successfully position its storage technology on the market as home storage for private households. However, additional growth capital was needed for the logical step to enter the market of long-duration energy storage for commercial and industrial customers. Together with the management, Quantum Partners started a broad-based, international financing round and was able to bring with Cummins the ideal investor on board. While Cummins, one of the world’s leading manufacturers of diesel gensets, is looking to reduce its dependence on the combustion engine in the future, VoltStorage benefits not only from the strengthened equity financing but also from a powerful, long-term thinking partner with a high level of industry expertise and an international sales network.

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